Why are houses in Houston so inexpensive? (Conroe, Spring: 2014, how much)

[Omo33]

As homes everywhere I’ve considered moving to (and elsewhere) exploding, it is blowing my mind how affordable Houston is. Even nice houses in nice areas, not in flood zones are very inexpensive. I’ve searched and read a few explanations but would like more input especially considering COVID, which to me seems to be an excuse for greed sometimes but other times has some merit.

With a budget of 300k, in almost all other cities I’ve looked at that means a townhome or an ‘ok’ 1,400 square foot 3/2 in a average neighborhood. And it some cities it’s rare for even that.

For Houston, it’s an all brick 3,000 sq f house with land if I want, a pool if I want, really anywhere I want. It’s almost overwhelming but I can’t help but think there is a price to this. What is it? Is it the absurd heat and traffic? Is this an after effect still dragging from Harvey or has it always been like this? What gives?

There are very few cities I have found somewhat comparable (Cleveland) but I understand those. Feel like I am missing something.

[ParaguaneroSwag]

Houston being huge and constantly expanding helps. Even though Cleveland is very cheap as you point out, it recently had one of the highest increases in COL by % of the entire country.l

From 2014-2018ish (and again during COVID) the economy was fairly bad here. It’s growing again of course but those years certainly put a pause on COL increase. 2018 was a net negative domestic migration year also which was a result of the lagging economy at the time plus Harvey. That’s obviously not the case anymore and Houston is currently the third fastest growing metro area but those years were where the slower increases came from.

Seeing your posts in the city vs city forum, I’d consider Spring or Conroe if you don’t mind the daily commute. If I remember correctly, you don’t work during normal business hours, so you won’t be forced to commute during rush hour traffic.

[LocalPlanner]

To build on what PS said, normally even in boom times Houston's home prices increased very slowly, in large part because it is very easy to add both suburban and urban housing supply here. Homes in 10-20 suburbs are always competing with homes in brand new suburbs. The only exceptions have been (1) the 2011-2014 boom (related to fracking), when the housing industry was flat on its back after the Great Recession but high-income jobs exploded, setting up a supply-demand mismatch in many residential areas and a lot of well-paid folks who could bid up prices, causing unprecedented appreciation, and (2) the COVID housing boom.

[Omo33]

Originally Posted by ParaguaneroSwag

Houston being huge and constantly expanding helps. Even though Cleveland is very cheap as you point out, it recently had one of the highest increases in COL by % of the entire country.l

From 2014-2018ish (and again during COVID) the economy was fairly bad here. It’s growing again of course but those years certainly put a pause on COL increase. 2018 was a net negative domestic migration year also which was a result of the lagging economy at the time plus Harvey. That’s obviously not the case anymore and Houston is currently the third fastest growing metro area but those years were where the slower increases came from.

Seeing your posts in the city vs city forum, I’d consider Spring or Conroe if you don’t mind the daily commute. If I remember correctly, you don’t work during normal business hours, so you won’t be forced to commute during rush hour traffic.

Good memory and great info, thank you. My hours are different and flexible but for the most part it will be 8-4/8-5. With some 08-2200.

I was actually looking into Spring, funny you should mention.

Just out of curiosity, how long would the Woodlands/Conroe/Spring commute be if I paid for the Hardy Toll everyday?

And to follow up what is the cost? I can’t find a monthly rate and have figured $3.20 a day or roughly $100/month. Does this seem accurate?

[Omo33]

Originally Posted by LocalPlanner

To build on what PS said, normally even in boom times Houston's home prices increased very slowly, in large part because it is very easy to add both suburban and urban housing supply here. Homes in 10-20 suburbs are always competing with homes in brand new suburbs. The only exceptions have been (1) the 2011-2014 boom (related to fracking), when the housing industry was flat on its back after the Great Recession but high-income jobs exploded, setting up a supply-demand mismatch in many residential areas and a lot of well-paid folks who could bid up prices, causing unprecedented appreciation, and (2) the COVID housing boom.

So is it safe to say the general 1.5-3% natural appreciation of a house in a ‘healthy/stable market’, extremes and situations aside, doesn’t really apply to Houston? I am of course talking normally, not in this day in age (my house is almost 100% in the last 2.5 years). I have read equity is hard to build in HOU for the same reasons y’all point out why it is inexpensive in the first place.

[ParaguaneroSwag]

Originally Posted by Omo33

So is it safe to say the general 1.5-3% natural appreciation of a house in a ‘healthy/stable market’, extremes and situations aside, doesn’t really apply to Houston? I am of course talking normally, not in this day in age (my house is almost 100% in the last 2.5 years). I have read equity is hard to build in HOU for the same reasons y’all point out why it is inexpensive in the first place.

I would say yes if you’re looking into Spring/Conroe/Woodlands, but the question is since the COVID housing boom happened so recently and seems like the inflection point has been passed by now, how long will it take to be back to a stable/normal market?

[Dopo]

Two words = “illegal workers”

[mojo101]

when we need a new roof,company will use contractors who use subcontractors who employ illegal workers,how much do you think they are paid for a day 's work,I doubt it is even $75.

TX goes back to its roots,driving long horns and exploring oil,both require travelling,so texans dont mind buying a house far away and drive drive drive.
The guys who mown your lawn,they have no job security,you can tell them dont bother to come anymore,nothing they can do,I know a guy who pays the same as 40 years ago.
but 300k for a house you described,with a pool,how old is the house?

[Wile E. Coyote]

I lived there for 9 months one time. I did not like Tornado Warnings. I hated bugs (the variety of bugs back in 1987 was immense). I did not care for the humidity and continual afternoon rains all summer. People drove around drinking with gun racks (back in 1987 in my early 20's it scared me).

My sister just had to rebuild 2 houses that were wrecked by Harvey. Talk about a fun time.

It's barely above sea level there; it's a swamp.

I haven't been there in years (and really do need to go visit -- but, not during hurricane season).

All that being said, who knows if I might retire down there if I needed to conserve money. I could buy a cheap house and freeze my property taxes at 65. It's a large metropolitan area with a lot to do. If I was super focused on money I think Texas would appeal to me (money just doesn't do it for me though).

[mojo101]

For Houston, it’s an all brick 3,000 sq f house with land if I want, a pool if I want, really anywhere I want. It’s almost overwhelming but I can’t help but think there is a price to this. What is it? Is it the absurd heat and traffic? Is this an after effect still dragging from Harvey or has it always been like this? What gives?
--------------------------------
that sounds too low even for Houston,
After Harvey,House issued some bonds ,it is a large sum,cant recall how much,so dont expect taxes to come down !